Opportunity cost is evident on the production possibilities frontier (PPF)graph
A) as we move from one point on the frontier to another point on the frontier.
B) as we move from the origin to any inefficient point.
C) as we move from one unattainable point to an efficient point on the frontier.
D) as we move from an inefficient point to the origin.
E) at any one single point on the graph.

Question

Quizplus · Accepted Answer

Opportunity cost is the value of the next best alternative foregone. As we move from one point on the PPF to another, we have to give up some units of one good to produce more units of the other good. Therefore, the opportunity cost of producing one good in terms of the other good is evident on the PPF graph as we move from one point on the frontier to another point on the frontier.

Opportunity Cost Is Evident on the Production Possibilities Frontier (PPF)graph